Category Archives: Wildfires

Two wildfires in California prompted officials to issue air pollution warnings almost 200 miles away in Nevada this week, reminding us that wildfire exposure reaches far beyond the flames.

The Soberanes fire which is located in the Monterey County area is currently 23,688 acres in size and is 10 percent contained. The Sand Fire, which began on July 22, quickly grew to more than 30,000 acres and is now 38,346 acres in size and 40 percent contained.

In the first six months of 2016 there were 26,510 wildfires across the United States, compared to 29,078 wildfires in the first half of 2015, according to statistics from the National Interagency Fire Center, as reported by the Insurance Information Institute (I.I.I.).

Over the 20-year period 1995 to 2014, fires—including wildfires—accounted for 1.5 percent of insured catastrophe losses in the United States, totaling about $6 billion, according to the Property Claims Services (PCS) unit of ISO.

Smoke, soot and ash produced by large wildfires present a risk to property and life in the fire zone, not to mention a potential health risk to residents living in the path of the smoke.

It’s important to recognize that even if a property doesn’t suffer direct damage from flames in a wildfire, it may be exposed to extensive smoke, soot and ash damage.

From the insurance perspective, damage caused by fire and smoke are covered under standard homeowners, renters and business owners policies and under the comprehensive portion of an auto insurance policy.

However, it’s important to notify your agent or insurer of this damage on a timely and proper basis.

Water losses or other damage caused by fire fighters while extinguishing a fire is also covered under these policies.

Here’s a visual of the smoke from the California wildfires, courtesy of NOAA and Weather Underground:

Elsewhere, severe weather and flooding in Europe where the storm ‘Elvira’ swept across parts of northern Europe between late May and early June caused most damage in Germany, France, Austria, Poland and Belgium, where floods impacted many major metro regions, including Paris.

May also saw no fewer than five outbreaks of severe convective storms in the United States, affecting parts of the Plains, Midwest, and Mississippi Valley. Storm-related flooding also caused major damage in parts of Texas.

If ever there were an example of the real danger posed by wildfires, the Fort McMurray wildfire in Alberta, Canada is it.

Firefighters are struggling to control this massive fire that started last Sunday, is estimated to have destroyed more than 1,600 structures in Fort McMurray and has resulted in more than 80,000 evacuations.

As gccapitalideas.com reports here, record high temperatures exceeding 32 C (90 F) and extremely dry air, together with strong winds have enabled the wildfire to grow and spread rapidly.

All three of these conditions have occurred in the Fort McMurray vicinity, and AIR Worldwide notes: “the wildfire that is now happening there is certainly catastrophic.”

While it is too soon to know the extent of the damage and the size of the Fort McMurray wildfire insurance loss, some early reports are helpful.

AIR Worldwide makes the important point that because of the oil industry, housing in the Fort McMurray area is more expensive than its remoteness would suggest and already it is clear that there has been a massive loss of property.

Wildfires in 2015 have already caused more damage and financial loss in the United States than in any other year since 2007.

Aon Benfield’s latest Global Catastrophe Recap report reveals that California wildfires during September destroyed more than 2,000 homes and resulted in estimated insured losses of at least $1.1 billion–the costliest since 2007.

The Valley Fire, northwest of San Francisco, and the Butte Fire, southeast of Sacramento, were the most destructive of the fires.

In its report, Aon notes that the Valley Fire left four people dead, destroyed 1,958 residential and commercial structures and damaged 93 others. It is the third-most damaging wildfire in state history.

Total economic losses were estimated beyond $1.5 billion, while preliminary insured losses were put at in excess of $925 million, Aon reports.

The Butte Fire left two people dead and destroyed 475 homes, 343 outbuildings and damaged 45 other structures. It is the seventh most damaging wildfire in state history.

Total economic losses were estimated at $450 million while preliminary estimated insured losses are in excess of $225 million.

With the peak of California wildfire season just beginning, the severity of the September events serves as a reminder of how costly the peril can be for the insurance industry, Aon Benfield said.

Elsewhere around the world, wildfires continued to pose problems in parts of Indonesia as officials declared 2015 the worst year for wildfires since 1997.

One study reported that Indonesia would endure $4 billion in direct and secondary economic losses from the fires in the regions of Sumatra and Kalimantan, Aon said.

A recent I.I.I. media advisory notes that seven of the 10 costliest wildfires in U.S. history in terms of insured losses have occurred in California. The costliest of these was the 1991 Oakland fire which produced $2.7 billion in claims (in 2014 dollars).

For more on the California wildfires, Janet Ruiz, I.I.I.’s Northern California-based representative can be reached at janetr@iii.org or (707) 490-9375.

A report in USA Today throws the spotlight on just how many homes in California are vulnerable to wildfire.

Data from the U.S. Forest Service cited by USA Today reveals that one-third of homes in California are located in areas prone to wildfires.

Apparently the Forest Service’s report estimates that 4.5 million homes in California are located in areas designated as the Wildland-Urban Interface (WUI)–developments and communities adjacent to forests.

USA Today goes on to note that California wildfires have destroyed more than 750 houses and hundreds of other buildings in the past week based on figures from CalFire, the state’s firefighting agency.

The Valley fire near Sacramento has been one of the most destructive. Mark C. Bove, senior research meteorologist with Munich Re America tweeted that for Northern California the Valley Fire is likely the biggest wildfire event in terms of insured loss since the Oakland firestorm of 1991.

In a media advisory the Insurance Information Institute (I.I.I.) notes that seven of the 10 costliest wildfires in U.S. history in terms of insured losses have occurred in California. The costliest of these was the 1991 Oakland fire which produced $2.7 billion in claims (in 2014 dollars).

Over the 20-year period 1995 to 2014, fires–including wildfires–accounted for 1.5 percent of insured catastrophe losses, totaling about $6.0 billion, according to the Property Claims Services (PCS) unit of ISO.

Janet Ruiz, I.I.I.’s Northern California-based representative, is available to conduct interviews in person or via Skype. She can be reached at janetr@iii.org or (707) 490-9375.

The Insurance Institute for Business & Home Safety (IBHS) offers tips on how to protect your property from wildfire here.

A 2015 study by CoreLogic identifies almost 900,000 residential properties across 13 states in the western U.S. –representing an estimated combined total property value of more than $237 billion–at high or very high risk of wildfire damage.

Here’s what the significant wildfire potential looks like by June and July:

Meanwhile, the National Oceanic and Atmospheric Administration’s (NOAA) recently issued Spring Outlook calls for drought conditions to persist in California, Nevada and Oregon through June with the onset of the dry season in April.

The Los Angeles Times reports that the rate of spread of the massive Rim fire burning near Yosemite National Park in California has slowed in recent days and firefighters expect to have it fully contained by September 10.

Here are two NASA satellite images of the fire,Ã‚ showing its impact on the landscape and atmosphere.

The first shows the plume of carbon monoxide pollution from the Rim Fire now extends into Canada. The second measures the height of the smoke plumes from the fire, showing that the smoke particles have reached altitudes as high as four miles.

A time lapse video of the fire posted by the Yosemite blog is currently going viral.

It cites U.S. Forest Service statistics that 65 million to 82 million of National Forest lands are at a Ã¢â‚¬Å“high or very high risk of fireÃ¢â‚¬  and are in need of restoration.

Between 1960 and 1970, there was only one year, 1969, when wildfires burned more than five million acres in the U.S. In the last decade, it happened eight out of 10 years, the WSJ adds.

As of July 1, some 11 wildfire, heat and drought events have resulted in an estimated $365 million in insured losses in 2013, according to Munich Re.

AonÃ¢â‚¬â„¢s June Global Catastrophe Recap notes that the Black Forest Fire near Colorado Springs became the most damaging fire in ColoradoÃ¢â‚¬â„¢s history and left two dead. The fire charred 14,280 acres of land and destroyed at least 511 homes. Insurers received at least 4,500 claims with payouts in excess of $350 million. Due to dozens of destroyed uninsured or underinsured homes, the overall economic loss will approach $500 million, Aon added.

On June 30, 19 firefighters were killed while working to contain the Yarnell Hill Fire in Arizona. This is the deadliest event for firefighters since 9/11 and the third highest firefighter death toll attributed to wildfires.